Qualcomm Inc (QCOM)

[khemara_qc]

Snip From Morningstar
http://news.morningstar.com/article/article.asp?id=176189

Snip:
Q: How does a company like Qualcomm (QCOM

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QCOM) get an "A" rating on stewardship when top leadership is passed within a family from one generation to the next? While there may be good experience gained by working in the family business, I always find it hard to believe that a company has put the very best person in charge when the board allows a family member to take over the reins. I certainly understand how and why it happens, but it seems to me that the overall stewardship should be questioned.

A: I agree with your assessment about dynastic management. Promotion by surname is not likely to produce the most capable leaders, especially when the apple falls far from the tree. However, after speaking with analyst John Slack, who covers Qualcomm for us, I think Qualcomm deserves an "A" Stewardship Grade (although it's a borderline "A"--the company scores 90 out of 100 on the scale for Morningstar's Stewardship Grade, which is the lowest possible "A"). Qualcomm's options issuance has been fairly small in recent years, and its financial performance disclosure is arguably some the best in the industry. In addition, the company eliminated its staggered board of directors earlier this year. Each director will now stand for election annually. That said, grading a company's stewardship is more an art than a science. If you think Qualcomm's management succession should disqualify it from receiving an "A," I would not argue with you.